Face Student Loans in the U.S.

Defacto Student Loan Debt in America

Student loans totaled $1.774 trillion in the third quarter (Q3) of 2024; this represents 9.82% of all household debt. In total, Americans owe in excess of seven (7) times more in mortgage debt than they do student loans. Mortgage debt totaled $12.594 trillion in 2024 Q3 while auto loan debt totaled $1.605 trillion.

Loan Data

Student loans have become a defining feature of the American higher education experience. For millions of students, they’re the bridge to a college degree—but that bridge often comes with years of repayment and financial stress.

In this post, we’ll take a closer look at how common student loans are, what repayment looks like for most people after graduation, and how to approach paying them off with smart, sustainable strategies.

How Common Are Student Loans in the U.S.?

Student loan debt is one of the largest categories of consumer debt in the United States—second only to mortgages, followed by auto loans and credit cards.

Here are some key statistics to consider:

• Over 43 million Americans carry federal student loan debt.
• The total outstanding student loan debt exceeds $1.7 trillion.
• The average federal student loan balance per borrower is around $37,000.
• More than 50% of bachelor’s degree recipients graduate with student loan debt.

Such impactful numbers casting over all Americans. It’s not just a student problem—it’s a national one.

Life After Graduation: Managing Student Debt

Repayment typically begins six months after graduation (the "grace period"). But what does that look like in reality?

Standard repayment plans are 10 years long, but many borrowers take longer. Simply looking at how much graduate students make, you can estimate how much they can save each month to pay off their loans.

Around 60% of borrowers are on income-driven repayment (IDR) plans that adjust monthly payments based on income.

Some borrowers experience delinquency or default due to job instability or underemployment in the early years of their career.

It can take 20 years or more for many borrowers to fully pay off their loans.

Best Practices for Paying Off Student Loans

If you’re navigating student loan repayment, here are some proven strategies to help you manage and eventually eliminate your debt:

1. Know What You Owe Track all your loans—federal and private. Use tools like the Federal Student Aid website to view your loan balances, interest rates, and servicers.

2. Choose the Right Repayment Plan The default 10-year plan may not be ideal for everyone. Explore:

• Income-Driven Repayment (IDR) if your income is variable.
• Graduated or Extended Plans for more flexibility.
• Public Service Loan Forgiveness (PSLF) if you work in a qualifying nonprofit or government job.

3. Make Extra Payments When You Can Even small additional payments toward your principal can reduce interest over time. Just be sure to instruct your loan servicer to apply the extra to your principal, not future payments.

4. Consider Refinancing—Cautiously Private refinancing can lower your interest rate, but it’s only a good idea if: You have strong credit and a steady income. You don’t need access to federal protections like deferment, forbearance, or forgiveness programs.

5. Automate Your Payments Most loan servicers offer a small interest rate discount (usually 0.25%) for setting up auto-pay—plus, you avoid late fees.

6. Set Milestones and Celebrate Progress Repaying student loans can be a long journey. Setting small goals, like paying off one loan or reaching a balance milestone, can keep you motivated.

Final Thoughts

Student loans are incredibly common, but they don’t have to be a life sentence. With the right plan and a little discipline, it’s entirely possible to manage—and eventually pay off—your loans without sacrificing your financial future.

Whether you’re just starting repayment or looking to accelerate your payoff plan, take it one step at a time. You’re not alone in this journey.